Kellton Tech Solutions Ltd. (KELLTONTEC) AI Stock Analysis

Kellton Tech Solutions Ltd.

(NSE:KELLTONTEC)

Select Model

Rating:51Neutral

Price Target:INR 11.00▲(0.92% Upside)

Action:reiterated

Date:08/28/26

Kellton Tech scores below average, driven primarily by weak financial quality: despite steady revenue growth and an improving, less-levered balance sheet, operating and free cash flow turned sharply negative over the last two years while the company reported profits — a significant earnings-quality red flag alongside thin, volatile margins. Technicals are mixed, with a short-term bounce above the 20- and 50-day averages but price still below the 100- and 200-day averages in a longer-term downtrend. The low P/E of 8.9 provides some valuation support, though the lack of a dividend and the cash flow concerns justify the discount. Earnings call and corporate event data were unavailable and were excluded, with their weight redistributed to the remaining components.

Positive Factors

Recovering profitabilityThe return to positive and healthy operating profitability indicates that the core IT services model is again producing earnings after the 2023 loss. If maintained, these margins can support reinvestment, strengthen resilience, and improve earnings durability over the coming quarters.

Negative Factors

Weak cash conversionPersistent negative operating and free cash flow is the clearest fundamental weakness because reported profits are not translating into internally generated liquidity. If this continues, Kellton Tech may face greater funding pressure and have less flexibility to invest, repay debt, or withstand weaker demand.

Kellton Tech Solutions Ltd. (KELLTONTEC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 5.87B
Dividend Yield: ―
Average Volume (3M): 222.70K
Price to Earnings (P/E): 6.5
Beta (1Y): 1.27
Revenue Growth: 9.34%
EPS Growth: 2.71%
Country: India
Employees: 1,370
Sector: General
Sector Strength: 55
Industry: Software - Application

Kellton Tech Solutions Ltd. Business Overview & Revenue Model

Company Description

Kellton Tech Solutions Limited is a global provider of information technology services, specializing in digital transformation and enterprise resource planning (ERP) solutions. The company's extensive offerings include agile software development, dig...

How the Company Makes Money

Kellton Tech primarily makes money by delivering IT services and software solutions to business customers under commercial contracts. Key revenue streams typically include: (1) Professional/technology services billed on a time-and-materials (T&M) bas...

Kellton Tech Solutions Ltd. Financial Statement Overview

Summary

Revenue has grown steadily to ₹12.17B in FY2026 and the balance sheet has strengthened, with equity more than doubling since FY2023 and debt-to-equity improving from 0.43 to 0.24 (Balance Sheet score 52). However, profitability is thin and volatile for a software firm, including a large FY2023 loss, and gross margin reporting is inconsistent across periods (Income Statement score 48). The dominant weakness is cash generation (Cash Flow score 22): operating cash flow was negative in both FY2025 (-₹144M) and FY2026 (-₹317M), and free cash flow fell to -₹1.84B in FY2026 despite reported net income of ₹917M. This disconnect between accounting profit and cash points to low earnings quality and keeps the overall financial score well below average.

Income Statement

48Neutral

Balance Sheet

52Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.37B	12.17B	10.98B	9.83B	9.17B	8.43B
Gross Profit	5.18B	6.34B	5.64B	1.80B	4.53B	8.40B
EBITDA	1.42B	1.35B	1.30B	1.04B	-883.74M	1.06B
Net Income	913.31M	916.64M	797.24M	640.11M	-1.27B	704.45M
Balance Sheet
Total Assets	0	11.29B	7.89B	6.60B	5.96B	6.72B
Cash, Cash Equivalents and Short-Term Investments	374.16M	374.16M	2.97B	276.97M	298.28M	248.15M
Total Debt	0	1.91B	1.63B	1.56B	1.62B	1.22B
Total Liabilities	-8.07B	3.22B	2.54B	2.17B	2.23B	1.93B
Stockholders Equity	8.07B	8.02B	5.35B	4.43B	3.73B	4.79B
Cash Flow
Free Cash Flow	-540.90M	-1.84B	-390.47M	164.79M	34.86M	-114.17M
Operating Cash Flow	8.35M	-316.60M	-144.00M	561.99M	242.82M	6.69M
Investing Cash Flow	-547.64M	-1.68B	-245.41M	-396.44M	-721.31M	-41.44M
Financing Cash Flow	936.90M	2.09B	387.75M	-186.85M	528.61M	-105.27M

Kellton Tech Solutions Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price10.90

Price Trends

50DMA12.94Negative

100DMA13.87Negative

200DMA15.11Negative

Market Momentum

MACD-0.56Positive

RSI29.36Positive

STOCH14.73Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KELLTONTEC, the sentiment is Negative. The current price of 10.90 is below the 20-day moving average (MA) of 11.79, below the 50-day MA of 12.94, and below the 200-day MA of 15.11, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 29.36 is Positive, neither overbought nor oversold. The STOCH value of 14.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KELLTONTEC.

Kellton Tech Solutions Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:KELLTONTEC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INFOBEAN	85Outperform	INR 13.31B	9.09	―	0.72%	35.59%	40.03%
IN:NEWGEN	77Outperform	INR 63.05B	19.58	―	1.36%	6.49%	-3.73%
IN:KSOLVES	64Neutral	INR 4.75B	13.18	―	4.99%	10.91%	15.87%
IN:NUCLEUS	63Neutral	INR 16.94B	16.30	―	1.95%	1.66%	-37.05%
IN:INNOVANA	57Neutral	INR 6.05B	20.29	―	―	26.01%	-34.49%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:KELLTONTEC	51Neutral	INR 5.79B	6.53	―	―	9.34%	2.71%

* General Sector Average

Performance Comparison

IN:KELLTONTEC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:KELLTONTEC	Kellton Tech Solutions Ltd.	10.90	-10.65	-49.42%
IN:INFOBEAN	InfoBeans Technologies Ltd.	137.29	-19.18	-12.26%
IN:INNOVANA	Innovana Thinklabs Ltd.	293.00	-202.90	-40.92%
IN:KSOLVES	Ksolves India Ltd	200.10	-107.52	-34.95%
IN:NEWGEN	Newgen Software Technologies Limited	442.45	-541.23	-55.02%
IN:NUCLEUS	Nucleus Software Exports Limited	643.45	-375.81	-36.87%

Kellton Tech Solutions Ltd. Corporate Events

Kellton Tech Sets Virtual AGM, Seeks Board Reappointments for FY26 Governance

Sep 8, 2026

Kellton Tech Solutions Ltd., a listed IT and digital services provider based in Hyderabad and Gurugram, has convened its 32nd Annual General Meeting for September 30, 2026, to be held via video conferencing and other audio-visual means. The company h...

Kellton Tech files Business Responsibility and Sustainability Report for FY 2025-26

Sep 8, 2026

Kellton Tech Solutions Ltd. has submitted its Business Responsibility and Sustainability Report for the financial year 2025-26, in line with Regulation 34(2)(f) of SEBI’s listing obligations. The report, filed on a standalone basis and availabl...

Kellton Wins Asian Development Bank Excellence Award, Targets $5 Million Strategic Partnership

Aug 18, 2026

Kellton Tech Solutions has been honoured with the Emerging Excellence Award by the Asian Development Bank at its 5th IDIQ Vendor Summit, recognizing its performance and growing role as a technology partner to ADB’s Information Technology Depart...

Kellton Tech Publishes Notices on Special Window for Physical Share Re-Lodgement

Aug 6, 2026

Kellton Tech Solutions Ltd. has notified the stock exchanges that it has published newspaper notices regarding a special window for the re-lodgement of physical share certificates. The publications appeared in the English daily Business Standard and...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 28, 2026

Kellton Tech Solutions Ltd. AI Stock Analysis